Bargaining Power of Customers
The elective procedure of cosmetic plastic surgery is rarely covered by insurance and is a cash business, although some credit is offered – using MasterCard, VISA, or a medical procedure credit card, CareCredit® which is a subsidiary of GE Capital (has a reputation for aggressive collections and charges 29.5 percent to carry a balance).
Consumers can easily defer purchase to a later time – or never – after numerous sessions with a number of surgeons.
Patients/consumers have the ability to negotiate the price, but many of them are embarrassed to do so; most physicians are uncomfortable with a negotiation.
Patients/consumers may prefer to travel away from Charlotte to keep the procedures confidential; others may travel to exotic destinations where the costs for cosmetic surgery are considerably lower and a vacation “recovery” period is enjoyable.
Word-of-mouth referral is very powerful.
High
Consumers have high bargaining power because of the elective nature of the procedure and its out-of-pocket cost.
Consumers can opt for a much less expensive substitute, shop price, wait for prices to decline, or forego the procedure.
Brazil has an international reputation for excellent outcomes with plastic surgery, offering a more affordable price (including air fare and top-tier hotels for recovery), plus greater confidentiality.
